TOKYO: Japan’s Nikkei share gauge slumped by the most in three weeks on Wednesday, tracking a sharp selloff in technology shares on Wall Street overnight.
The benchmark Nikkei 225 slid 3.16 percent to close at 65,326.42, the steepest drop since July 27. The broader Topix slipped 3.09 percent to 4,012.31. Major US share indexes closed lower as dimming expectations for a Middle East peace deal damped risk appetite. Oil prices rose while government bonds around the world fell, driving US yields sharply higher. The Philadelphia SE Semiconductor Index, which tracks US tech shares, plunged 5 percent.
“Amidst ongoing caution over crude oil prices remaining high and concerns that interest rates might rise, high-growth companies are being sold off,” said Maki Sawada, an equities strategist at Nomura Securities. “A similar trend is being observed in the Japanese stock market.”
There were 45 advancers on the Nikkei 225 against 179 decliners and one unchanged.